what you must understand before you continue to read my 2 ceents.
1. the limit order book is always levelled and full of synthetic market makers (HFT) looking to capture the spread by any means necessary and tradign algo's who just want a timem price priority. THey ahve deep pockets os they layer the limit order book. NOW when you have enough money to $ to layer the book initially then everything that happens to that book afterwards you can have an understanding of it. So do not think computers are not MAPPING all trades, all cancels, and all participants. ALGO's can and will chased your limit orders to a large magnitude. So here is how you should start trading. The computers rely on data from the limit order book. SO STOP PLACING RESTING OR STATIC ORDERS that you want filled. instead constantly palce limits and move them .. which adds DATA to the book that is virtually random. this is leegal as long as you have intent to trade. so if htey want ot slow down our quotes. we need to constantly as we watch the market place limtis and move them around in the first 10 levels. This added data will be noise to them and they will act on it.
Use makrket orders to enter and exit trades with the click of a mouse. free up your time cuz you are out and allows you t obe one with the market. alos buying at mkt moves price in your direction. over and over again. a LIMIT order brings price against the direction yu want it to go!. You can use stop orders to enter or exit of course because they are mkt orders.. well mkt with protection orders.
RECAP. use stops or mkt orders only to enter and exit trades. and put limit orders on the book that you intend to trade but most likely won't but make sure you move them every 5 to 10 seconds to keep the data stream flowing. You will notice that the algos will constantly try and come to your limit to fill you. ALGO's SEEK LIQUIDITY. ALWAYS. they want to make the spread. Good luck and have fun with it. why can hft and algo screw with the limit order book.. YOU ARE A participant you pay good money to sit at the table. have some fun with it. Cancel orders are free and move markets. if you cancel a level of the book.. then you can move the market this is how most stops are run.. a couple sells and tons of limit cancels.
1. the limit order book is always levelled and full of synthetic market makers (HFT) looking to capture the spread by any means necessary and tradign algo's who just want a timem price priority. THey ahve deep pockets os they layer the limit order book. NOW when you have enough money to $ to layer the book initially then everything that happens to that book afterwards you can have an understanding of it. So do not think computers are not MAPPING all trades, all cancels, and all participants. ALGO's can and will chased your limit orders to a large magnitude. So here is how you should start trading. The computers rely on data from the limit order book. SO STOP PLACING RESTING OR STATIC ORDERS that you want filled. instead constantly palce limits and move them .. which adds DATA to the book that is virtually random. this is leegal as long as you have intent to trade. so if htey want ot slow down our quotes. we need to constantly as we watch the market place limtis and move them around in the first 10 levels. This added data will be noise to them and they will act on it.
Use makrket orders to enter and exit trades with the click of a mouse. free up your time cuz you are out and allows you t obe one with the market. alos buying at mkt moves price in your direction. over and over again. a LIMIT order brings price against the direction yu want it to go!. You can use stop orders to enter or exit of course because they are mkt orders.. well mkt with protection orders.
RECAP. use stops or mkt orders only to enter and exit trades. and put limit orders on the book that you intend to trade but most likely won't but make sure you move them every 5 to 10 seconds to keep the data stream flowing. You will notice that the algos will constantly try and come to your limit to fill you. ALGO's SEEK LIQUIDITY. ALWAYS. they want to make the spread. Good luck and have fun with it. why can hft and algo screw with the limit order book.. YOU ARE A participant you pay good money to sit at the table. have some fun with it. Cancel orders are free and move markets. if you cancel a level of the book.. then you can move the market this is how most stops are run.. a couple sells and tons of limit cancels.
